Why royalty on bauxite-alumina should rise (2)
Cita Mineral (CITA), the largest bauxite ore miner in Indonesia, which is co-owned by Harita Group (a diversified business group controlled by Lim Haryanto family) and Glencore Plc (one of the world’s largest mining companies), booked net profit of Rp1.03 trillion in the first quarter of 2025, surged by 162% from the corresponding period of 2024.
Pressures on coal
Data from two of China’s largest coal miners suggested more pressures on Indonesian thermal coal, which already suffered 12% decline in export volume in the first four months of the year. Higher domestic production might lead to further reduction in the country’s import.
Power Plays Behind Ride-Hailing Policy Debate
The proposal to cap ride-hailing app commissions at a maximum of 10 percent—down from the current 20 percent—put forward by House of Representatives (DPR) member Adian Napitupulu (PDI-P) may seem pro-driver at first glance. However, who truly benefits from this narrative?
Demand-side crisis
PT Fast Food Indonesia Tbk (FAST), operator of Kentucky Fried Chicken (KFC) outlets, was forced to close further down eight outlets in the first quarter of 2025, leading to dismissal of 188 workers. The company’s sales revenues expanded only by 1.8% in the quarter, but managed to cut 81% of its losses.
The Controversy of Shipping Fee Regulation
Ministerial Regulation No. 8 of 2025 on Commercial Postal Services issued by the Ministry of Communication and Digital Affairs marks a significant move in the government’s effort to reform Indonesia’s logistics industry. On one hand, this regulation stems from the intention to build a courier service ecosystem that is healthy, fair, and sustainable. On the other hand, it raises concerns about its impact on consumers and e-commerce players who have long been the driving force behind Indonesia’s digital economy.
Intensified competition in the coffee chains
Shares of Fore Kopi (FORE) gained 2.79% to Rp368 to make a market capitalization of Rp3.28 trillion this morning, already bigger than MAP Boga Adiperkasa (MAPB), operator of Starbucks coffee outlets.
Why Chandra Asri is bigger than BASF AG?
Shares of Chandra Asri Petrochemical (TPIA), which consolidates petrochemical assetss in Southeast Asia, opened higher by 6% to Rp9.050 this morning, making a market capitalization of Rp779 trillion or US$47 billion, bigger than the world’s profitable and reputable chemical player BASF AG.
A last-ditch attempt for Pan Brothers
Pan Brothers (PBRX), one of the largest surviving textile companies in the country, is issuing 26.3 billion new shares to creditors, giving them the largest block of ownership (55%). Unlike Sritex (SRIL), Pan Brothers survived bankruptcy proceedings, and the rights issue will improve the company’s balance sheet.
Indonesia’s On-Demand Services: Between Global Ambition and Local Arrogance
Indonesia’s on-demand content industry is entering a critical juncture. On one hand, the explosive growth of internet access and digital consumption presents immense opportunities. On the other, persistent issues such as piracy, hyper-competition, and a culture of reluctance to pay for digital content continue to hamper its development.
Downfall of retailers: GS Supermarket
South Korean retail company GS Supermarket will reportedly close all of its branches in Indonesia on May 31, 2025 after operating for almost nine years. The closing down of super/hypermarket has affirmed the tight competition among retailers in the country.